1 SB67
2 215993-1
3 By Senator Chambliss
4 RFD: Transportation and Energy
5 First Read: 11-JAN-22
Page 0 1 215993-1:n:12/21/2021:CMH*/bm LSA2021-2553
2
3
4
5
6
7
8 SYNOPSIS: Under existing law, the State Department of
9 Transportation is required to set aside the first
10 monies received out of the revenues pledged to the
11 obligations of the Alabama Federal Aid Highway
12 Finance Authority in each fiscal year and deposit
13 the same in a sinking fund established within the
14 State Treasury until there shall have been
15 accumulated therein an amount at least sufficient
16 to pay the principal of and interest on the
17 obligations.
18 This bill would provide that the pledged
19 revenues instead be deposited into the sinking fund
20 no later than the date for payment of the principal
21 of and interest on the obligations.
22
23 A BILL
24 TO BE ENTITLED
25 AN ACT
26
Page 1 1 Relating to the Alabama Federal Aid Highway Finance
2 Authority; to amend Section 23-1-314, Code of Alabama 1975, to
3 provide further for the date for payment of the principal of
4 and interest on the obligations issued by the authority.
5 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
6 Section 1. Section 23-1-314, Code of Alabama 1975,
7 is amended to read as follows:
8 "§23-1-314.
9 "(a) For the purpose of providing funds to enable
10 the authority to pay at their respective maturities and due
11 dates the principal of and interest on the obligations that
12 may be issued by it under this article at any time after March
13 1, 2014, there hereby is irrevocably pledged and appropriated
14 so much as shall be necessary for the purpose of the state's
15 share of net gasoline tax proceeds.
16 "(b) In addition, for the purpose of providing funds
17 to enable the authority to pay at their respective maturities
18 and due dates the principal of and interest on the obligations
19 that may be issued by it under this article, there hereby is
20 irrevocably pledged and appropriated each year all federal aid
21 funds for federal aid projects to be received by the State
22 Department of Transportation from the United States government
23 to the extent that such funds may be required to pay the
24 principal of and interest on such obligations. All federal aid
25 funds for federal aid projects received by the State
26 Department of Transportation from the United States government
27 during each such federal fiscal year shall be held in trust by
Page 2 1 the state and applied to the extent required to the payment of
2 the principal of and interest on the obligations authorized to
3 be issued under this article.
4 "(c) All moneys No later than the date for payment
5 of the principal of and interest on the obligations issued by
6 the authority during each fiscal year, all monies hereby
7 appropriated and pledged shall be paid into the State Treasury
8 and shall constitute a sinking fund which shall be held in
9 trust to be used to pay the principal of and interest on the
10 obligations; provided, however, that the pledge of the state’s
11 share of net gasoline tax proceeds shall be on parity with the
12 pledge contained in Section 23-1-181 to secure obligations
13 issued by the Alabama Highway Finance Corporation. As security
14 for the payment of the principal of and interest on the
15 obligations issued under this article, the authority is
16 authorized to pledge the proceeds of the appropriation and
17 pledge provided for in this section. All pledges made by the
18 authority shall take precedence among themselves in the order
19 of the adoption of the resolutions making such pledges, except
20 as may be otherwise provided in such resolutions. The State
21 Department of Transportation is hereby authorized and directed
22 to set aside the first moneys received out of the revenues
23 pledged hereunder in each fiscal year and deposit the same in
24 the sinking fund provided for in this subsection until there
25 shall have been accumulated therein an amount at least
26 sufficient to pay the principal of and interest on the
27 obligations issued by the authority hereunder which mature,
Page 3 1 are subject to mandatory redemption or otherwise become due
2 during such fiscal year."
3 Section 2. This act shall become effective
4 immediately following its passage and approval by the
5 Governor, or its otherwise becoming law.
Page 4